“The initial onset of a recession historically marks an inflection point for stocks, and we believe a sustained rebound is underway, as the market looks past the current economic weakness and shifts focus instead to an imminent V-shaped recovery in the global economy,” the US bank adds. Singapore, with its safe haven status amid geopolitical and economic uncertainties of the region, is likely to see well-supported inflows of investments.
SINGAPORE (June 26): Singapore’s economy is seen to undergo a “sustained” rebound and that bodes well for certain cyclical recovery plays in key sectors, says Morgan Stanley analysts Wilson Ng and Derek Chang.
The current Q2 is likely to be the trough quarter with a contraction of 15%, leading to a full-year decline of 6.5%. However, in line with a global recovery that is already underway, Singapore’s 2021 GDP is forecast to reach 7.8%, says Morgan Stanley.
